Terrain Ambient Occlusion is obsolete in CRYENGINE 3.6. Use Environment Probes for ambient lighting control.
The Terrain Ambient Occlusion system controls the amount of ambient light in a scene. For example, a dense forest has less ambient light near the ground because most of the light is stopped by the trees.
In the current implementation, occlusion information is stored in textures and the effect is applied to the scene in a deferred way.
The images below show the difference (in a scene) when Terrain Ambient Occlusion is enabled and when it is not.
The amount of effect can be controlled in the Time Of Day dialog box.
Make sure that the Calculate Terrain Sky Accessibility check box has been selected during the terrain texture generation.
The following are the important console variables:
Use the Terrain Ambient Occlusion system to control the amount of light in a scene.